If you wish to find out more about Carbon Trade Exchange and the services we provide, please contact us
Do carbon credits really reduce emissions?
Yes, the projects that generate carbon credits make a real difference to climate change by reducing, avoiding or sequestering greenhouse gas emissions (GHGs). These projects are independently verified by third parties to ensure that emission reductions actually occur. At Carbon Trade Exchange we guarantee that all of the credits on our platform are verified and issued.
Is carbon offsetting the best solution to combatting climate change?
Carbon offsetting is an integral part to combatting climate change and should be accompanied by efforts to reduce energy consumption and manage greenhouse gas emissions (GHGs). At Carbon Trade Exchange we encourage companies to implement internal reduction programs and compensate their residual (unavoidable) emissions with carbon offsets.
How are carbon credits created?
The carbon market can be divided into two: the voluntary market and the regulatory (compliance) market.
In the compliance market, carbon credits are generated by projects that operate under one of the United Nations Framework Convention on Climate Change (UNFCCC) approved mechanisms such as the Clean Development Mechanism (CDM). Credits generated under this mechanism are known as Certified Emissions Reductions (CERs). In the voluntary market, carbon credits are generated by projects that are accredited to independent international standards such as the Verified Carbon Standard (VCS). These credits are known as Verified Emission Reductions (VERs). Carbon Trade Exchange supports the trading of both voluntary and compliance credits. It is important to note that carbon credits differ from carbon allowances although the term carbon credit is interchangeably used to represent both. Although in most cases they both represent one tonne of carbon dioxide equivalent, allowances do not originate from carbon projects but are allocated to companies under a 'cap and trade' system such as the EU Emissions Trading Scheme - therefore, they represent the right to emit.
How are carbon credits verified?
Carbon offset projects are verified by independent third party auditors who asses the quantification of actual emission reductions ensuring that these correspond to the number of credits issued to the project.
What is additionality?
Additionality means that a project goes beyond business-as-usual - that it would not have been possible without the extra revenue gained from selling offsets. This ensures that any greenhouse gas reductions from a project are ‘in addition’ to what would have happened anyway.
What is meant by retirement and how do I retire my credits?
Retiring credits to means removing them from the market so that they are never re-sold in the future. Retirement is done through the registry. Retired credits can be seen on the registry available for public viewing.
What is a registry?
A registry is a database that tracks the ownership of carbon credits over their lifetime. Credits can be moved across registries. Please click here for further information.
What is the price of a carbon credit?
Credit prices fluctuate with time and market demand and supply. There are however crucial differences between voluntary credit prices (VERs) and compliance credit prices (CERs etc):
- Compliance carbon credits are traded in a market that is far more liquid and much bigger than the voluntary market.
- Voluntary credits reflect the cost to implement the project so prices will vary across the market spectrum depending on the credit standard, verification party, location, vintage and quantity bought. Companies may wish to tailor the credits they buy to their activities or reflect company values.
What is the current supply / demand for voluntary carbon credits?
The report titled 'State of the Voluntary Carbon Markets 2011' sponsored by Carbon Trade Exchange and published by Ecosystem Marketplace and Bloomberg New Energy Finance gives a good overview of the voluntary market and the major trends that were seen in 2010. The next edition will published in the coming months which will look back at 2011. Carbon Trade Exchange provides its members with real time market data including all previous transactions which can be filtered by standard, location, vintage and project type.
Download the latest full report here
How do I calculate my carbon footprint?
Depending on the size of your company, your carbon footprint can be measured either online by numerous calculators or for large organisations, by dedicated consultants. Once you quantify your emissions across your company or a specific activity, you can then reduce your emissions and then work out how much you need to offset. To calculate your carbon footprint, please enquire with us and we will be happy to direct you to one of our partners.
>> Please contact us if you have further enquiries.
